CORPORATE SOCIAL RESPONSIBILITYCompliance of Conflict Mineral Regulation
Conflict Minerals policy
SK hynix defines the "mineral in conflict" as the 3TG minerals such as gold, tungsten, tin, and tantalum that are illegally mined in Democratic Republic of the Congo (DRC) or its neighboring countries.
UN has announced that the armed rebels in DRC has raised its funds by selling the minerals in conflict for the last 10 years and U.S. Council has introduced the Dodd-Frank Wall Street Reform and Consumer Protection Act, "Article 1502", in 2010. These measures aim to increase the transparency for using the minerals mined in a way against human rights and prohibit the use of such minerals in conflict. More regulations on minerals in conflict are being enacted in regions other than U.S.A. as well.
|2015 ~ 2017||Established the on-site monitoring system
Established the announcement system for minerals in conflict
|2013 ~ 2014||Established the integrated management system for minerals in conflict
Established the survey system
Expanded the CFS certification in the refineries
|2010 ~ 2012||Started managing the use of minerals in conflict|
SK hynix shares the social significance of restricting the use of mineral in conflict and is systematically restricting the use of mineral in conflict in the manufacturing process.
We have established the management process for the mineral in conflict and are regularly investigating the use of mineral in conflict in our supply chain. Especially, we are investigating and managing the refineries of the raw materials based on the work process. In the future, we will not only promote the voluntary report of our partners, but also expand CFS certification.
Through the continued activities of the task force, we have established the management and operating process for the mineral in conflict between organizations such as purchase, ethical management, and quality management.
Also, we have established the management policy and internal management system that are designed to carry out the policy and set up the responsibilities and roles between each organization. Also, we are sharing the plans for managing the mineral in conflict with our partners and working hard to report the usage status of the mineral in conflict transparently.
SK hynix used the database regarding the raw material physical properties such as REACH and RoHS for managing the harmful substance contained in the product to identify the 33 potential partners that may be using the mineral in conflict prohibited by regulations.
Based on the EICC report regarding the partners with the potential to use the mineral in conflict, we have carried out the investigation twice in 2014. As a result, it has turned out that none of our partners has used the mineral in conflict. Also, it has been verified that the mining companies are mainly stationed in areas such as Asia and Australia and are not operating in the conflict areas and we have recommended those who have not yet been certified with CFS to obtain the certification. We will expand the range of on-site monitoring for our partners in order to increase the reliability of our investigations.
- Use product BOM (Bill of Material) information
Investigate mineral information
- Identify the partners with the potential to use the mineral in conflict
- Establish plans for monitoring in writing of the targeted partners
- Notify the plan for monitoring in writing and request for data
- Examine the data
- Request improvement to the refineries that have not yet been certified with CFS
- Have the improvement plans submitted by the supply line
- Monitor the improvement status
Expand CFS certification
In order to figure out the status of CFS certification1) in 2014, we have carried out survey on our partners. As a result of the survey conducted in the first half of 2014, some of the refineries were found not to have been certified by CFS.
We have requested those who have not yet been certified to obtain the certification within 2014 and planned to stop the relationship with the refinery that were not certified by CFS. Also, through encouragement and regular survey, we have ensured that the supply lines were certified with CFS. In 2015, we will conduct regular survey on new and existing partners to encourage those who have not been certified to obtain the CFS certification. Also, we will reflect the details contained in the IPC 17552) to the survey of the partners to strengthen the survey and actively comply with the global regulations.
- 1) CFS Certification (CFSP: Conflict Free Smelter Program, refinery certification program hosted by CFSI)
- 2) IPC 1755 (Standards of IFC association for investigating and verifying the companies that may use mineral in conflict)